CGT valuation deadline extended

We thought you may be interested to have the low down on Capital Gains Tax (CGT) valuations

CGT valuation deadline extended

We thought you may be interested to have the low down on Capital Gains Tax (CGT) valuation

Property owners have until 30 September 2004 to have their properties valued for CGT.

  • A valuation must, however, indicate the value of the property as it was on October 1, 2001, the date on which CGT was introduced;
  • It is not compulsory to have your property formally valued. Valuations by estate agents and other people - even the taxpayers themselves - are acceptable, as long as they can be justified by means of supporting documents and information which the SARS may ask for;
  • As far as residential properties are concerned, many owners will not have to pay CGT when they sell because they will qualify for the "primary residence exclusion". This means that if the property (a) is registered in the seller's own name, i.e. not in the name of a company or CC, and (b) is the seller's actual home, and if (c) the plot is smaller than 2 hectares, and (d) the capital gain is less than one million rands, then the owner will not have to pay CGT;
  • However, an owner will still need to reflect a property value figure on his tax return for the year in which he sells.